| Biomedicine refers to pharmaceutical products developed in the medical field using the theoretical basis of related disciplines such as biology,pharmacy and chemistry.In recent years,with the vigorous promotion of national policies and market demand,China's biomedical industry has developed rapidly,which is not only reflected in the basic equipment,but also in the ability of enterprises to develop and innovate.However,with the continuous development of the biomedical industry,the concentration of the industry has also increased,which has led to fiercer competition in the same industry.Therefore enterprises want to maintain and gain certain advantages in a constantly changing environment,it is necessary to constantly adjust their strategic planning and the process of re-planning and implementing the future development direction of enterprises is the process of strategic transformation of enterprises.Strategic transformation,as a means of enterprise development and competition,brings enormous risks while bringing opportunities to enterprises.This paper takes WALVAX BIOTECHNOLOGY CO.,LTD.(hereinafter referred to as “ WALVAX Bio ”)as an object to analyze the impact of its strategic transformation on corporate profitability which has two meanings.On the one hand,it is a practical meaning.Strategic transformation is a way for many mature companies to continue to gain competitiveness,which is more obvious for companies with fierce competition in the industry.With the rapid development of China's bio-pharmaceutical industry,more and more bio-pharmaceutical companies expect to gain new competitive advantages through strategic transformation.Therefore,the case analysis based on WALVAX Bio's biological strategy transformation has certain practical significance.On the other hand,it is academic.Domestic scholars are very rich in independent research on corporate strategic transformation and profitability analysis,but there are relatively few case studies on corporate strategic transformation from the perspective of profitability.Case studies based on biomedical industry are even rarer.Therefore the analysis of WALVAX Bio's strategic transformation from the perspective of profitability changes complements and expands the relevant research perspective.This paper also hopes to provide a reference for the practice of strategic transformation of other biopharmaceutical companies in China by analyzing the profitability of WALVAX Bio's biological strategy transformation.This paper uses the literature research method,the case study method and the combination of qualitative and quantitative methods.This paper introduces the meaning of strategic transformation,the motivation of strategic transformation,the characteristics of profitability,the analysis method of profitability,the factors affecting profitability and the related theoretical basis.First,combined with the case of WALVAX Bio's biology and the views of scholars,this paper proposes that the strategic transformation of WALVAX Bio's biology is a major adjustment implemented by enterprises to adapt to environmental changes.This paper summarizes the motivations of strategic transformation as three aspects:realizing optimal allocation of resources,adapting to changes in external environment and driving performance of managers;Secondly,based on the analysis of profitability?categorization and comparable characteristics,the main methods of profitability analysis and the influencing factors of profitability are introduced in combination with WALVAX Bio's actual cases;Finally,the four theoretical foundations of resource-based theory,competitive advantage theory,core competence theory and dynamic capability theory are described.Through these theoretical overviews,we provide substantial theoretical support for the case analysis of WALVAX Bio's strategic transformation.In 2012,WALVAX Bio began to implement a new strategic development model of “vaccine + blood products + monoclonal antibody drugs”and hope to grasp the development trend of the industry and improve the competitiveness of the industry.WALVAX Bio has repeatedly implemented a number of outreach mergers and acquisitions activities and finally completed the strategic transformation of the company in 2015.Combining the theoretical basis with the actual situation,this paper believes that the reason why WALVAX Bio's strategic transformation is driven by the promotion of national industrial policies and market growth.On the other hand,it is the result of the management's pursuit of further development.However,through a variety of methods to compare the profitability of WALVAX Bio's biological strategy before and after the transformation,this paper finds that the advantages of the company's strategic transformation have not been fully reflected and its profitability has been negatively affected.The reason why this will have a negative impact is mainly due to the following reasons:First,the strategic layout is the fundamental factor that has caused WALVAX Bio's profitability to decline;Second,the mismatch between business strategy and financial strategy has greatly weakened WALVAX Bio's profitability;Thirdly,the potential merger and acquisition risk outbreak of the strategic transformation directly leads to the decline of WALVAX Bio's profitability;Finally,blind performance has created significant uncertainty about the profitability of WALVAX Bio's biotech.Based on the theoretical research of scholars at home and abroad,this paper focuses on the impact of WALVAX Bio's strategic transformation on profitability.Following the problem of finding problems and solving problems,this paper draws the following conclusions and implications:First of all,the rapid pursuit of strategic transformation is the root cause of corporate profitability risks.Therefore,enterprises should reasonably arrange the progress of the transformation and steadily advance the completion of the strategic transformation;Secondly,the mismatch between business strategy and financial strategy will increase the profit risk after the transformation of the enterprise.Therefore,the successful implementation of corporate strategic transformation requires a financial strategy that is highly aligned with the business strategy to maintain the stable development of corporate profitability;Third,the extension of the strategic transformation approach makes the company's risk control capabilities more important.Therefore,when enterprises choose an extended strategic transformation model,they must pay attention to the construction and improvement of the enterprise risk control system;Finally,in the process of the extended strategic transformation,companies are likely to blindly perform performance gambling in order to obtain high financing,resulting in a sharp increase in corporate profit risk.Therefore,careful use of performance against gambling agreements can effectively avoid unnecessary profit risks in the strategic transformation of enterprises. |
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